Baylor University frequently has employees who for one reason or another, are required to leave the Waco area. Other times, a job opening with a specific set of requirements may only be filled by someone who resides outside of Texas. While Baylor University can, in limited circumstances, hire (or continue to employ) staff who reside and work from outside Texas, there are a number of factors which complicate such hires.

As an educational institution, Baylor's property is exempt from state property tax, but only so long as the use of the property is exclusively for educational purposes. Use of Baylor property for activities that do not advance Baylor's educational mission creates a risk that Baylor's property tax exemption could be lost, and the nature of the activity could be inconsistent with Baylor's exemption from income tax.

From time to time, divisions within the university contract with private air carriers for flight services that are not regularly scheduled commercial flights. Such contracts present a myriad of issues for Baylor and must be closely managed to ensure safety and compliance. The potential risks to Baylor include increased exposure to losses, perhaps uninsured and perhaps for individual managers, for death or injury, insurance complications, and non-compliance with federal aviation and taxation laws.

As a tax-exempt, Internal Revenue Code Section 501(c)(3) organization, Baylor University must serve a public rather than a private interest. As a result, Baylor may not operate in a way that benefits private interests of designated individuals. Any private benefit must be qualitatively incidental to the public purpose, which means that the benefit must be "a necessary concomitant of the activity that benefits the public at large." Additionally, a private benefit must be quantitatively incidental when measured against the specific public benefit provided.

The U.S. has implemented laws and regulations that control several aspects of international transactions (including transactions with foreign nationals in the U.S.). In general, the policies underlying the laws and regulations relate to national security, terrorist activities, immigration, commerce, and economic sanctions or embargoes against specific countries. As Baylor's research and international operations evolve and increase, these laws and regulations will have increasing impact on Baylor's operations.

Baylor University is an institution of higher education which wants its students, faculty and staff to value civic and political involvement. However, as a tax-exempt organization, Baylor University is prohibited from engaging in political activities.

Baylor, like most employers, is subject to the Fair Labor Standards Act (FLSA). The FLSA is a federal law which, among other things, sets a minimum wage, requires overtime pay for covered non-exempt employees, and imposes recordkeeping requirements.